29 Jun Stocks are off to the races today!
With all major indexes up significantly, the stock market is having one of the best days of 2012. The see-saw tradeoff between the stock and bond markets is continuing, with the bond market currently under pressure as investors pull money from the safe haven of bond and purchase riskier assets like stocks. This is pushing interest rates higher following yesterday’s near record low interest rates. The catalyst for today’s bullish sentiment was news from Europe that brings hope to a plan to solve their debt crisis. Since we hear similar news often, it is surprising that investors are so quick to jump at any hope of good news… With inflation remaining tame, the hope for continued low interest rates continues. If you locked your rate in yesterday, nice work! If not, we are still suggesting a locking stance, as the volatility at these lofty bond market levels continues.